For decades, there has been a relatively predictable arc for hospitality executives: Build experience, move into leadership, and grow alongside a concept or company. Jump ship on your terms, or stay and enjoy the fruits of your labor. 

But with the current wave of private equity (PE) investment and mergers and acquisitions (M&A) in the industry, that path is far less linear. 

Let’s talk about how executives like you can recognize the benefits and drawbacks of working for a company that’s laser-focused on scaling to sell… and how you can tailor your career path to suit your goals and lifestyle. 

Setting the Stage: PE is Back

While M&A activity was strong in 2025  — this article notes the billion-dollar sales of both Soho House and Playa Hotels — private equity backing was less notable. In fact, PE firms offered only 10% of total deal value for hospitality M&A last year, down from 50% in 2024. 

In 2026, we’re seeing fundraising open up, so we expect to see a continued surge of M&A activity, this time fueled by more PE backing. And with PE money comes more risk-taking.

Scaling in Non-viable Markets

On the surface, more PE money is a good thing. More capital means more concepts, more expansion, and more opportunity. But the reality is nuanced and in some cases, volatile.

Not all of this capital is being deployed with long-term sustainability in mind. In fact, a meaningful portion is flowing into markets and projects that may struggle to succeed operationally. 

One thing I’ve noticed is the persistent belief that brands need a presence in high-profile markets like California to be considered relevant or scalable. Many long-time hotel operators and executives know firsthand how difficult it is to achieve consistent profitability in California due to high costs and intense competition. Some have avoided it altogether, recognizing that they don’t want a property’s failure to be their failure. 

So when growing hotel groups move into these markets, I get the same question from many of my executive candidates. “What does success look like for this hotel in [Malibu, Napa, San Francisco]? What do they want me to achieve?”

In these conversations, I often have to remind them that PE strategy isn’t always focused on long-time market viability. In many cases, it’s about positioning for a future transaction. Your goal is to be part of that, not to be the leader in EBITDA for the entire company.

Choose Your Path: Scale It or Stay Stable

The shift has real implications for hospitality executives who may find that the companies they join or help build may not exist in the same form five years down the line. Concepts are being acquired, restructured, or dissolved at a fast pace. That can accelerate growth and learning, but it can also disrupt long-term career planning.

As a result, executives are often faced with a fundamental choice between two distinct career paths.

Ride the PE Wave

The first path is to join early-stage or growth-stage concepts backed by PE, where the goal is to scale big, optimize for valuation, and ultimately exit through a sale or merger. It’s a high-risk, high-reward environment. 

Executives on this track gain invaluable experience in:

• Scaling operations

• Managing rapid expansion

• Navigating transactions. 

If the exit is successful, the financial upside can be significant. However, the risks are equally real. Many of these ventures won’t reach their intended outcome, and if they fail, you’re back at square one.

Go for Stable and Steady

The second path is centered on stability and longevity. This means aligning with established companies that may not offer big bonuses or equity but will provide:

• Consistent leadership opportunities

• Steady income

• A clearer long-term outlook

These organizations are often less influenced by short-term financial engineering or big injections of cash and more focused on sustainable operations. For those who want geographic consistency or need stable, consistent income, these groups are a strong fit. And the good news is, it’s not boring work! These groups still need to compete with the newer models, so you can be part of their pivots that allow them to stay competitive and in demand by their guests. 

Making Your Decision

Neither choice is inherently better. It all depends on individual priorities, risk tolerance, and where you are in your career. And in some cases, it will depend on the group making the offer. After all, an investor with a strong track record is a different opportunity than one running on diminished capital and limited industry experience. 

Together, we can help you evaluate the two paths and the opportunities available within each of them. Get in touch today if you’d like to discuss how to stay resilient and successful now that the landscape has changed.